Influence of Intellectual Capital, Government Support and Entrepreneurial Leadership on Organisational Performance

Abstract

Background: There are inconsistent research results regarding the role of intellectual capital (IC), entrepreneurial leadership (EL), and government support (GS) in organisational performance (OP).  

Objective: This study examined the role of Intellectual Capital (IC), entrepreneurial leadership (EL), and government support (GS) on organisational performance (OP). 

Methodology: This study used a descriptive survey to achieve its aim. The sampling technique used was snowball sampling, with 87 private universities participating and completing the questionnaire. The analysis was conducted using SEMPLS with outer model testing, inner model testing, and hypothesis testing.

Results: The research results show that IC and EL  have no effect on organisational performance. However, the IC measures, namely human capital (HC), relational capital (RC), structural capital (SC), technological capital (TC), and spiritual capital (SPC), have a significant impact on IC. In addition, the seven roles of EL  show a positive, meaningful, or significant direction towards performance. The variable of government support (GS) has a positive direction and has a significant impact on organisational performance (OP).

Conclusion: IC is an element that forms a competitive, effective, and efficient strategic advantage, while HC and SC have a low contribution to IC in PTS. The variable of government support (GS) in private higher education institutions is also very important.

Unique contribution: An outer model test was conducted in two stages on the dimensions of the IC variable in the EL role, revealing the dimensions of the variable that have a strong relationship with the latent variable.

Key Recommendation: Several factors that may influence the research outcomes, the IC element is intellectual agility. Next, this factor can be explored further to understand the existing relationships by expanding the survey to other government areas to compare findings and understand the weight of the reference context where IC has multidimensionality and the role of EL.